For People Interested in Starting a Business

The Office of Cannabis Management will release applications, issue licenses, and develop regulations outlining how and when businesses can participate in the new adult-use industry in Minnesota. Over the coming months, the new state agency will develop the regulatory framework for legal adult cannabis, and establish processes and timelines to apply for licenses.

Information about buying and selling seeds

Effective Aug. 1, 2023, cannabis seed can legally be sold in Minnesota. Cannabis seed as related to the 2023 cannabis legislation will be referred to as marijuana seed to distinguish it from hemp. Marijuana seed will be sold and regulated under the Minnesota Seed Law. More information about buying and selling seed is available at the Minnesota Department of Agriculture's Fact Sheet Marijuana Seed FAQ (PDF). 

Cannabis tax

Effective July 1, 2023, all sellers of taxable cannabis products must register with the Minnesota Department of Revenue to remit the new Cannabis Tax. Learn more at Cannabis Tax.

Guidance regarding financial services to the cannabis industry

The Minnesota Department of Commerce issued guidance regarding its current position and basic responsibilities of financial institutions' boards and management regarding cannabis banking. Go to the Department of Commerce Guidance Regarding Financial Services to the Cannabis Industry (PDF).

Licenses

The legislation establishes the following types of licenses (Note: Applications for business licenses are not available at this time because OCM has to complete a rulemaking process first. OCM expects applications for licenses to be available in early 2025):

• Cannabis microbusiness (application fee $500; no initial license fee; renewal license fee $2,000)
• Cannabis mezzobusiness (application fee $5,000; initial license fee $5,000; renewal license fee $10,000)
• Cannabis cultivator (application fee $10,000; initial license fee $20,000; renewal license fee $30,000)
• Cannabis manufacturer (application fee $10,000; initial license fee $10,000; renewal license fee $20,000)
• Cannabis retailer (application fee $2,500; initial license fee $2,500; renewal license fee $5,000)
• Cannabis wholesaler (application fee $5,000; initial license fee $5,000; renewal license fee $10,000)
• Cannabis transporter (application fee $250; initial license fee $500; renewal license fee $1,000)
• Cannabis testing facility (application fee $10,000; initial license fee $10,000; renewal license fee $20,000)
• Cannabis event organizer (application fee $750; initial license fee $750)
• Cannabis delivery service (application fee $250; initial license fee $500; renewal license fee $1,000)
• Lower-potency hemp edible manufacturer (application fee $250; initial license fee $1,000; renewal license fee $1,000)
• Lower-potency hemp edible retailer (application fee $250 per retail location; initial license fee $250 per retail location; renewal license fee $250 per retail location)
• Medical cannabis cultivator (application fee $250; no initial license fee; no renewal license fee)
• Medical cannabis processor (application fee $250; no initial license fee; no renewal license fee)
• Medical cannabis retailer (application fee $250; no initial license fee; no renewal license fee)
• Medical cannabis combination business (application fee $10,000; initial license fee $20,000; renewal license fee $70,000)

To learn more about the license types, visit Minnesota Statutes, Chapter 342.

Social equity

The legislation prioritizes applications for business licenses from people who are considered social equity applicants, which includes people who were convicted of possessing or selling cannabis; family members of someone convicted of possessing or selling cannabis; service-disabled veterans, current or former members of the national guard, or any military veteran or current or former member of the national guard who lost honorable status due to an offense involving the possession or sale of cannabis; residents for at least five years of a neighborhood that experienced a disproportionately large amount of cannabis enforcement; emerging farmers; and residents of at least five years of census tracts with high poverty rates.